Google’s Ad Business Faces Legal Scrutiny Amid Monopoly Allegations
Google’s advertising empire is under intense scrutiny as the US Department of Justice (DOJ) and 17 states argue the tech giant has unlawfully dominated the online advertising market. During a trial that kicked off this week in a Virginia federal court, the DOJ claimed Google’s monopolistic practices have stifled competition, harming publishers, advertisers, and consumers across the web.
The DOJ alleges that Google’s $31 billion ad tech business, which connects website publishers with advertisers, has been leveraging its dominance through anticompetitive mergers and self-dealing practices. These tactics, the government contends, have driven up advertising costs while reducing revenue for publishers.
“Google isn’t on trial just for being big,” said DOJ attorney Julia Tarver Wood in her opening statement. “They’re here because they use their size to crush competition.”
The case follows a broader push by the Biden administration to enforce US antitrust laws. The trial, which could reshape the economics of the digital advertising world, comes just weeks after a federal judge ruled Google’s search engine was an illegal monopoly in a separate case.
The government’s lawsuit centers on Google’s control of several key ad tech tools, including its publisher ad server, advertising exchange AdX, and advertiser network, accusing the company of creating a “trifecta” of monopolies. Google has countered, stating that the DOJ’s case is outdated, emphasizing that the advertising industry remains competitive with major players like Amazon, Meta, and TikTok.
This trial could set a precedent for how Big Tech companies operate within the digital advertising space, with potential outcomes including the breakup of Google’s ad business.
